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Investigations

Boggs Paving, Inc. Chief Executive Officer Pleads Guilty

On August 21, 2014, Carl "Drew" Boggs, Chief Executive Officer of Boggs Paving, Inc., pleaded guilty in U.S. District Court, Charlotte, North Carolina, to Conspiracy to Defraud the United States and Conspiracy to Commit Money Laundering.

According to the indictment, from 2003 through October 2013, Boggs fraudulently obtained tens of millions of dollars of construction contracts funded by the U.S. Department of Transportation, by certifying that Styx, a certified Disadvantaged Business Enterprise (DBE), performed several millions of dollars of work. In reality, the majority of the work was performed by Boggs and other non-DBEs.

To create the appearance that Styx performed the work and received the payments, it was alleged that Boggs, among other things, deposited the payments into a bank account owned by Styx, but controlled by Boggs. The respective funds were then paid back to Boggs and its affiliates.